What is the South Dakota sales tax? South Dakota: Sales Tax Handbook

South Dakota:

South Dakota Sales Tax Rate SD Sales Tax 2016

State Sales Tax Local Sales Tax Range Average Local Tax Average Combined Tax Max Combined Tax
4.50% 0.00% - 6.50% 0.931% 5.431% 11%

2016 South Dakota Sales Tax Handbook

These rankings show how the South Dakota sales tax compares to the other 49 states + DC. The state with the highest sales tax is ranked 1st, and states with the same sales tax have a tie rank.

South Dakota's Sales Tax By The Numbers:

South Dakota has a lower-than-average sales tax, including when local sales taxes from South Dakota's 89 local tax jurisdictions are taken into account.


Rankings by Average State + Local Sales Tax:

  Ranked 40th highest by combined state + local sales tax

  Ranked 7th highest by per capita revenue from state + local sales taxes ($1,382 per capita)


Rankings by State Sales Tax Only:

  Ranked 16th highest by state sales tax rate

  Ranked 11th highest by per capita revenue from the statewide sales tax ($1,017 per capita)



Download South Dakota datasheet Printable PDF South Dakota Sales Tax Datasheet

South Dakota has a statewide sales tax rate of 4.50%, which has been in place since 1933.

Municipal governments in South Dakota are also allowed to collect a local-option sales tax that ranges from 0.00% to 6.50% across the state, with an average local tax of 0.931% (for a total of 5.431% when combined with the state sales tax). The maximum local tax rate allowed by South Dakota law is 6.00%. You can lookup South Dakota city and county sales tax rates here.

This page provides an overview of the sales tax rates and laws in South Dakota. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the South Dakota Sales Tax Handbook's Table of Contents above.

What is exempt from sales taxes in South Dakota?

Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how South Dakota taxes five types of commonly-exempted goods:


Clothing

  4.5%

Groceries

  4.5%

Prepared Food

  4.5%

Prescription Drugs

  4.5%

OTC Drugs

  4.5%

For more details on what types of goods are specifically exempt from the South Dakota sales tax see South Dakota sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in South Dakota? Taxation of vehicle purchases in particular are discussed in the page about South Dakota's sales tax on cars.

Are services subject to sales tax in South Dakota?

"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In South Dakota, services are taxable unless specifically exempted.

About the South Dakota Sales Tax

The state of South Dakota has relatively simple sales tax rate, and utilizes a flat state tax rate. However, in addition to the flat state tax rate, there are county taxes or local city taxes, which can vary significantly depending on which jurisdiction you are in. City Governments have the ability to apply a gross receipt tax on certain transactions. In addition, tribal governments have the ability to charge a higher tax rate than is usually allowed, as per a special agreement with the state of South Dakota.

Is the South Dakota Sales Tax Destination-Based or Origin-Based?

South Dakota is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within South Dakota from a South Dakota vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.

Is South Dakota a Streamlined Sales Tax State?

South Dakota is a member of the Streamlined Sales and Use Tax Agreement, which means that the South Dakota Department of Revenue has taken significant steps to simplify South Dakota's sales tax rules and administration process.

Contact the South Dakota Department of Revenue

The South Dakota Sales Tax is administered by the South Dakota Department of Revenue. You can learn more by visiting the sales tax information website at dor.sd.gov.

Phone numbers for the Sales Tax division of the Department of Revenue are as follows:

  • Local Phone: (605) 773-3311
  • Toll-Free Phone: (800) 829-9188

Learn More: Our Book Recommendations

If you would like to learn more about how to manage your South Dakota sales taxes, we recommend the following books:


Small Business Taxes For Dummies

This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.

Buy on Amaxon

A Guide to Sales and Use Tax

This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.

Buy on Amaxon

Simplify South Dakota sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.


South Dakota Sales Tax Rates by Zip Code:

Need an updated list of South Dakota sales tax rates for your business? Download our South Dakota sales tax database!


** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/south-dakota